Kelo vs. City of New London is a case decided by the Supreme Court involving the use of eminent domain to transfer land from one private owner to another one for the purpose of economic development. The case was first discussed in the Supreme Court of Connecticut.
The decision was that such transfers are constitutional if the government believes the benefits that will come to the community are significant enough.
This case, just like the existence of minimum wage, demonstrates two things about federalism:
- It is a duty of the government to redistribute resources in order to reduce inequalities.
- The federal and state powers work in conjunction, while having separate duties, some autonomy in decision-making and a clear hierarchy.
